On the main road on the opposite side from the bank of bangkok next to another bank is a stall/restaurant. If you sit down you will get an english menu.avoid the palce accross the road.
Great thai food. 2 can eat with a couple of beers for 200B ($5). Most farang tourists will get suckered into the all you can eat "thai bbq" at the places around the lake.
This is a great little cafe where you can get all sorts of food, including really good bread. They have tables and a platform covered in cushions where you can stretch out with a book and relax. You can also organise various tours from there.
Favorite Dish: Have to say I really loved the fresh pineapple smoothies. We all had different dishes and everyone thought theirs was excellent. Great sandwiches.
Food that locals eat is inexpensive, cheaper even than in other provinces. People in MHS generally don't make a lot of money, so the price of eating out for local food is reasonable. Restaurants that foreigners frequent will be more expensive (and rightly so). Be adventerous and eat at a little dive - the food will be just as good, and maybe even better.
Favorite Dish: Khao soi. A local (well, northern Thai) noodle dish that kicks ass. You can order with chicken or beef, or vegetarian ('jay') if you want. Has quite a bit of coconut milk in it so it is not the best thing for your arteries, but it tastes SO GOOD.
You can get it for about 15 baht a bowl.